A Professional Sports Team and Related Items (Including a Stadium)were

question 10

Essay

A professional sports team and related items (including a stadium)were bought by an exceedingly wealthy investor and sports fan. The negotiated price was $225,000,000. Details of what was purchased and the agreed fair values are as follows:
The team has been less than successful in its professional sports league and has been recording losses of $1,000,000 to $8,000,000 per year on its audited financial statements for the past five years. It was these losses that prompted the last owner to sell the team and related assets.
Required:
a. There are several identifiable intangible assets noted on the list. Group these assets into three classes, being those that are
(i)easily measurable and identifiable;
(ii)reasonably measurable and identifiable; and
(iii)very difficult to measure and identify.
For each group, what common quality or feature of these items distinguishes their classification?
b. While all the items can be assigned a value, would you capitalize all these amounts?
Explain your conclusion.

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Definitions:

Atomic Orbitals

Mathematical equations that detail the position and wave-like motions of electrons within an atom.

Hybrid Atomic Orbitals

Orbitals that result from the combination of standard atomic orbitals within an atom, explaining the bonding in molecules beyond simple shapes.

C-C

A abbreviation typically used to signify a carbon-carbon bond within organic molecules.

σ Bond

A type of covalent bond formed by the head-on overlap of atomic orbitals, characterized by the shared electron density along the axis connecting the bonded nuclei.